On Monday evening (09/06), the first debate between Indonesia’s two presidential candidates (joined by their running mates) was held and broadcast live on national television by various Indonesian television stations. This debate is the first in a series of five debates in which both teams - Joko ‘Jokowi’ Widodo and Jusuf Kalla vs Prabowo Subianto and Hatta Rajasa - are able to share their vision and mission to the Indonesian electorate. The debate immediately became a trending topic on social media.

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The political turmoil that has been plaguing Thailand since 2006 can become an advantage for Indonesia if the country manages to attract investors that were previously engaged in business or exploring business activities in Thailand. Although Indonesian politics are characterized by a certain level of uncertainty as well, particularly ahead of the upcoming July presidential election, the political situation is much more under control in Indonesia. Thailand, Singapore and Malaysia are Indonesia's greatest economic rivals in Southeast Asia.

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With the presidential election of Indonesia (scheduled for 9 July) becoming a battle between Governor of Jakarta Joko Widodo, popularly known as Jokowi, and former army general and Suharto crony Prabowo Subianto, it is worth taking a closer look into the ideas and policies that both candidates would like to implement if elected as the next Indonesian president, as well as their stance on specific economic issues. The viewpoints that are mentioned below are based on the documents that both parties provided to the General Election Commission.

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Both the Indonesian rupiah exchange rate and the country's benchmark stock index (known as the Jakarta Composite Index or IHSG) have strengthened significantly on Wednesday's trading day (14/05). The rupiah appreciated 0.76 percent to IDR 11,450 per US dollar by 15:00 local Jakarta time according to the Bloomberg Dollar Index. Meanwhile, the IHSG gained 1.09 percent to 4,975.13 by the same time. Main reason for this strong performance is the official declaration of the PDI-P to form a coalition with NasDem and PKB.

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The Indonesian presidential election, scheduled for 9 July 2014, is most likely to become a battle between Joko "Jokowi" Widodo and Prabowo Subianto. Although this had already been expected as both men can rely on popular support (according to various surveys) and have the political backing of important political parties, a number of developments on Tuesday (13/05) seem to confirm this expectation. Moreover, there is more clarity about the vice-presidential candidates that will join the July election.

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In Indonesian media it was reported today (13/05) that Hatta Rajasa, the current Coordinating Minister for Economic Affairs, will meet President Susilo Bambang Yudhoyono this afternoon. It is speculated that in this meeting Rajasa wil ask permission to resign from his post in order to be able to run as Prabowo Subianto's running mate in the presidential election (9 July 2014). A 2008 law stipulates that ministers need to resign when participating in the election (as presidential or vice-presidential candidate) to avert a possible conflict of interest.

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Only minutes ahead of the deadline on Friday (09/05), the General Election Commission (KPU) released the official results of Indonesia’s 2014 legislative election. As had been expected, the official result is highly similar to the quick count results that had been published on the day of election (09/04). The current main opposition party the Indonesian Democratic Party of Struggle (PDI-P) won the election, securing 18.95 percent of the vote, followed by Golkar (14.75 percent) and the Great Indonesia Movement Party (Gerindra) with 11.81 percent.

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Indonesian newspaper Investor Daily reported that on Friday 9 May 2014 Joko Widodo, the presidential candidate of the PDI-P (winner of the April 2014 legislative election), will announce his running mate for the presidential election. According to the newspaper, Surya Paloh - founder of the NasDem party - said that the running mate (vice-presidential candidate) has already been agreed upon although he declined to mention a name. The PDI-P and NasDem formed a coalition last month in order to nominate a presidential candidate.

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Although Indonesia's benchmark stock index (known as the Jakarta Composite Index or IHSG) fell immediately after its opening on Monday (28/04), the index is expected to strengthen this week as Joko 'Jokowi' Widodo will announce his running mate for the 2014 presidential election. Jokowi is the presidential nominee of the PDI-P party (the largest opposition party in the Indonesian parliament), which won the legislative election in April 2014 by securing about 19 percent of the popular vote.

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The International Monetary Fund (IMF) praised the Indonesian government's policy approach to safeguard the country's financial stability amid external shocks in 2013 and hopes that the new government, which will be inaugurated in October 2014, continues the economic reform agenda. Changyong Rhee, Director of the IMF's Asia Pacific Department, said that Indonesia - Southeast Asia's largest economy - is currently on the right track and forecast to grow 5.4 percent in 2014, slightly lower than the 5.78 percentage growth in 2013.

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With Indonesia's presidential election approaching (9 July 2014), investors - both domestic and foreign - have become more hesitant to commit to large investments, instead preferring to wait for the election results first. Obviously, investors want to see a 'market friendly' president to lead Southeast Asia's largest economy for (at least) the next five years; a ruler who can safeguard a conducive investment climate. For the Indonesian people, a just ruler is needed; one who can improve Indonesia's political and social issues.

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Late on Tuesday evening (13/08), the Corruption Eradication Commission (KPK) arrested Rudi Rubiandini, head of the Upstream Oil and Gas regulatory special task force (SKK Migas) for allegedly accepting bribes amounting to USD $400,000 from Kernel Oil Pte Ltd, which is headquartered in Singapore. Four other people were also arrested in connection with this case. Rubiandini is currently being questioned by the KPK. The institution has one day to determine Rubiandini's legal status.

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Although Indonesia’s next presidential election will be held in mid-2014, Aburizal Bakrie already announced in 2012 that he would run for the presidency on behalf of the Golkar party, one of the leading political parties of Indonesia and once the strong political vehicle of Suharto during the New Order regime (1965-1998). However, Bakrie, chairman of Golkar and often referred to by his nickname 'Ical', is one of the most controversial figures in modern Indonesian politics and business.

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Yesterday Lembaga Survei Indonesia (LSI), a leading Indonesian public opinion research institute, published the result of a survey that indicated Megawati Soekarnoputri is leading the poll to become the country's next president in 2014. In the survey she is closely followed by Aburizal Bakrie and Prabowo Subianto. This preliminary result can be regarded negative as these names are 'products' of the old regime and thus will not support further democratization.

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Just a few years ago, Susilo Bambang Yudhoyono's Democratic Party (in Indonesian Partai Demokrat or PD) enjoyed huge popularity among Indonesia's population. More than one fifth of the electorate voted for the 'Democrats' in the 2009 parliamentary election, a notable achievement in Indonesia's pluralistic society. In particular, the party's hard stance towards corruption was likened by the people. Now, however, the party crumbles under its own weight.

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Next year, Indonesia will have new parliamentary and presidential elections. Now already, these elections are highly relevant as political parties need to find ways to gain popular support and need to look for the right presidential candidates. Political parties or coalitions of political parties that receive at least 20 percent of the votes during the parliamentary election, are allowed to nominate a presidential candidate. Thereafter, a presidential election - in which a few candidates participate - will decide the next Indonesian president.

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